Active risk management is essential for Electrolux to drive successful operations. The Group is impacted by various types of risks including strategic and external risks but also business risks such as operational and financial risks. Electrolux monitors and minimizes these risks in a structured and proactive manner.
Electrolux risk management framework
Electrolux faces different types of risks that can be divided into Strategic risks and Manageable business risks. The strategic risks are related to the Group’s strategy and are impacted by the external environment, while the business risks are related to operational and financial risks. These are managed by the Group’s operational units and Group Treasury, respectively. Electrolux has several processes to manage overall risks through operational activities that are performed by the business area boards.
The Group has also established internal bodies that manage risk exposures on a regular basis. Examples of internal bodies are the Risk Management Board, the Insider Committee, the Ethics & Human Rights Steering Group, the Audit Board and the Tax Board. For more information on the Electrolux organizational structure and system for internal control and risk management, see the Corporate Governance report in the Annual Report.